The U.S. Commerce Department released new home sales data on Thursday. New home sales dropped 11.4% to a seasonally adjusted annual rate of 481,000 units in March from 543,000 units in February. It was the steepest fall since July 2013.

February's figure was revised up from 539,000 units.

Analysts had expected new home sales to reach 514,000 units.

The drop was driven by lower sales in the Northeast in the South. New home sales in the Northeast plunged 33.3% in March, while new home sales in the South slid 15.8%.

The median sales price of new houses sold was $277,400 in March, down from $281,600 in February.